Rautaruukki, Wartsila and SKF to merge longs business
Finnish steel producer Rautaruukki Oyj, Finnish company Wartsila Oyj and Swedish firm AB SKF signed a memorandum of understanding to merge their long products businesses into a jointly owned company called NewCo.
NewCo's operations will cover Wartsila's subsidiary Imatra Steel, SFK's subsidiary Ovako Steel and Rautaruukki's long products subsidiaries Fundia Special Bar, Fundia
Wire and Fundia Bar &
Wire Processing.
Rautaruukki, Wartsila and AB SKF will own 47%, 26.5% and 26.5% of NewCo, respectively.
Rautaruukki's
rebar business will not be included in the transaction.
The final agreement regarding NewCo is expected to be signed by June 30, 2005.